The participants said that they are also looking forward to labour reforms and incentives for sectors including manufacturing, infrastructure and real estate.
Ahead of Budget, an industry confidence survey today showed that a sustainable turnaround remains elusive on investments, profits and exports, while another study urged the government to 'walk the talk' and take steps to improve ease of doing business.
The results of Business Confidence Survey, conducted by industry body FICCI, also showed a marginal dip in the proportion of respondents anticipating 'moderately to substantially better' performance over the near-term at economy, industry and company level.
While the situation is certainly better when compared to last year, the change in quarter on quarter numbers are yet to indicate a firm turnaround, FICCI said.
According to Ficci's poll, measures announced by the government over the course of last seven to eight months did have a positive impact on the sentiment of the business community. However, to sustain this buoyancy it will be important that the process of implementation of these reforms continues with momentum.
The survey results come within days of eminent banker Deepak Parekh stating that the industry remains optimistic but impatience has begun creeping in among the industrialists as to why not much has changed on the ground on the ease of doing business front in the last nine months that the new government has been in power.
The FICCI survey also found that the industry is confident about the government pursuing its broad economic agenda to push reforms.
In another survey, consultancy major Grant Thornton said that more than half of the Indian businesses expect radical tax reforms as well as more clarity on certain taxation measures in the Budget.
"There is political stability, markets are at a high, everyone is talking about 'acche din'. The Prime Minister has spoken about 'Make in India', he has stressed on our desire to attract FDI and has reassured global investors a non- adversarial tax environment but India still ranks 142 out of 189 countries in the ease of doing business," Grant Thornton Advisory Director Pallavi Bakhru said.
"Now is the opportunity for the government to walk their talk. India Inc is waiting with bated breath!," Bakhru added.
Another survey conducted by industry body CII also found that the industry is pinning high hopes on the Narendra Modi-led Government's first full Budget, to be unveiled on Saturday.
Both FICCI and CII surveys showed that a majority of the CEOs believe that a framework for Goods and Services Tax (GST) would be announced in the Budget, which would tilt the balance in the interest of revenue neutrality.
Besides, India Inc wants Finance Minister Arun Jaitley to simplify taxes and step up action on ease of doing business.
Most CEOs polled by CII expect the revenue deficit target for the coming year to be between 2.6-2.8%, while they believe the fiscal deficit will be set between 3.7 and 4% of GDP.
The participants said that they are also looking forward to labour reforms and incentives for sectors including manufacturing, infrastructure and real estate.
CEOs participating in the CII survey pointed out that sustained GDP growth is essential for tax revenue buoyancy, and growth recovery needs a capex stimulus.
Capital expenditure was budgeted at Rs 2.3 lakh crore in FY 2015 and is still falling short. According to CEOs polled, a majority believe that an increase in capital expenditure outlay in FY 2016 will be budgeted at Rs 70,000 crore.
To fund this capex, they suggest that apart from subsidy rationalisation, revenues can be augmented through aggressive disinvestment of government holdings in public sector enterprises. While the disinvestment target in FY 2015 was Rs 63,000 crore, CEOs expect this to be Rs 75,000 crore and above in FY16.
On GAAR, the CEOs were unanimous in their expectation of a two-year deferral.
The FICCI survey polled responses from about 150 companies with a turnover ranging from Rs 3 crore to Rs 10,000 crore and belonging to a wide array of sectors - chemicals, steel, paper products, textiles, automotive, electric machinery, pharmaceutical, food processing and hospitality.
The 'Pre-Budget Corporate Expectations' survey of Grant Thornton found that 66% of the firms were optimistic about reduction in personal income tax rates.
At the same time, most of the companies (79%) felt that corporate tax rates would largely remain unchanged, while another 57% felt that the rate of Minimum Alternate Tax (MAT) would remain constant.
About 56% corporates said that the upcoming budget would usher in radical tax reforms.
On corporate tax amendments, 60 per cent of the firms anticipate clarity from the Finance Minister on "indirect transfers" and deferment of General Anti Avoidance Rule (GAAR) in the upcoming budget.
The pre-budget survey also found that Corporate India expects maximum thrust on the infrastructure and defence sectors, followed by manufacturing and agriculture sectors.
About 41% of the companies also expect that the budget would provide indirect tax incentives to make 'Make in India' campaign a success.
"Given our demography, we need to generate employment in the country not just to become an economic giant but also to make sure that we do justice to our youth," Bakhru said.
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